In 1995 the Philippines passed the Special Economic Zone Act, which established certain areas where corporations could set up factories, import raw materials without paying duties or tariffs, and in some cases avoid paying taxes for a number of years. What is this an example of?

Question

Quizplus · Accepted Answer

The Special Economic Zone Act in the Philippines is an example of the race to the bottom, where countries compete with each other to offer the most favorable conditions for corporations to set up operations in their countries. This can lead to a situation where labor and environmental standards are lowered to attract investment.

In 1995 the Philippines Passed the Special Economic Zone Act